Case 219.

Query. Grain is transported to X from points west and is transferred from cars to elevators. Railroad companies receiving grain from such elevators for transportation pay to the elevator company one-quarter of 1 cent per bushel, this charge being covered by a note in our tariff. To what account should such charges paid to the elevator company by the railway company be charged?

Answer. To Revenue Account No. 1, "Freight Revenue."

Case 220.

Query. What is the proper disposition of payments made to industrial concerns for services of their switch locomotives? We find it cheaper or more convenient to pay the industrial concerns the rate set forth in our tariff and have them do their own switching rather than to assign one of our own locomotives to that service. Answer. Payments of this nature may be disposed of by charging them to Revenue Account No. 1, "Freight Revenue."'

Case 221.

Query. In the case of passenger trains run under a guaranty where you provide for splitting the revenue between "Passenger Revenue" covering amount received from the sale of tickets and "Other Passenger-Train Revenue" for the deficit made up by the guarantor I assume that the entire mileage should go under the head of Passenger-Train Miles' and not under that of Special-Train Miles." Is this

correct?

Answer. Yes; unless the train is a mixed train.

Case 222.

Query. This company handles picnic trains between X and V on the following basis: (1) So much for each train at an agreed price per coach without regard to the number of people handled; (2) so much for each passenger with a guaranty of so much revenue. In case the revenue per capita does not equal the guaranty, the deficiency is paid to the company. What is the proper classification in revenue account?

Answer. In the first case stated the revenue should be credited to Revenue Account No. 10, "Special Service Train Revenue. In the second case proposed the portion of the receipts based upon the rate per passenger and the number of passengers should be credited to Account No. 2, Passenger Revenue;" the remainder, if any, received under the guaranty should be credited to Account No. 8, "Other Passenger-Train Revenue."

Case 223.

Query. Circus trains are handled between stations at a lump sum for a train, with a limitation on the number of people carried. Am I correct in assuming the revenue should be credited to Revenue Account No. 10, Special Service Train Revenue?"

Answer. Yes.

Case 224.

Query. In case of picnic trains, chartered trains, and theatrical trains, where the revenue is properly credited to Revenue Account No. 10, how should the number of passengers, the train mileage, and the car mileage be treated, as far as passenger statistics are concerned; that is, in ascertaining rate per passenger per mile, etc.? Answer. No accounts should be kept of passengers and passenger miles where the revenue is properly credited to Operating Revenues Account No. 10, "Special Service Train Revenue." With regard to train-miles, car-miles, locomotive-miles, etc., see the Classification of Locomotive-Miles, Car-Miles, and Train-Miles.

Case 225.

Query. We derive revenue from transferring trains of other railroad companies over a portion of our tracks with our own power, for which we charge a certain rate per car. What disposition should be made of this revenue?

Answer. This should be credited to Revenue Account No. 11, "Miscellaneous Transportation Revenue.''

Case 226.

Query. How should the earnings in respect of parlor-car service be treated! Answer. When the parlor-car service is not an outside operation, such earnings should be credited to Revenue Account No. 4, "Parlor and Chair Car Revenue." Case 227.

Query. We ran a special train from A to B, destined to a point beyond, and required for our service a guaranty of $114. Tickets collected amounted for our portion to $51.65. We collected the remainder from roads beyond. How shall we treat this?

Answer. The portion collected under the guaranty should be credited to Revenue Account No. 8, "Other Passenger-Train Revenue."

Case 228.

(Answer not finally approved. See Accounting Series Circular No. 12b.)

Case 229.

Query. Garnishment suits are frequently entered against railroads covering amounts due from them to other parties. In certain States the garnishee is allowed a fee for answering any such suits. What treatment should be followed as to this matter?

Answer. Credit garnishee fees to Revenue Account No. 19, "Miscellaneous."

Case 230.

Query. To what account should sale of gravel from company's gravel pit be credited?

Answer. Profit should be credited to Revenue Account No. 19, Miscellaneous.'' The average cost of production should be credited to the ballast clearing account. Case 231.

Query. Is the "Car-Service" account to be credited with the amount of ear service accruing in the current month or only with the amount actually paid during that month?

Answer. Credits to Revenue Account No. 16, "Car Service," should be upon the basis of accruals.

Case 232.

Query. Our road occasionally has opportunity to dispose of cinders. To what account should amounts thus received be credited?

Answer. Such credits should be made to Revenue Account No. 19, "Miscel laneous.''

(Answer not finally approved. See Accounting Series Circular Nɔ. 12b.)

Case 233.

Case 234.

(Answer no finally approved. See Accounting Series Circular No. 12b.)

Case 235.

Query. This company acquired from the A & B Railway Company (whose property we purchased en bloc) about 75 freight cars in bad condition. These cars were taken over at an estimated value of $200 each and are not used in operating the property, but are held for work in grading, etc., and repairs have heretofore been charged to the work benefited. May we follow this procedure in the future? Answer. Yes.

Case 236.

(Answer not finally approved. See Accounting Series Circular No. 125.)

Case 237.

Answer not finally approved. See Accounting Series Circular No. 12b.)

Case 238.

(Answer not finally approved. See Accounting Series Circular No. 12b.)

Case 239.

(Answer not finally approved. See Accounting Series Circular No. 12b.)

Case 240.

(Answer not finally approved. See Accounting Series Circular No. 12b.)

Case 241.

(Answer not finally approved.

See Accounting Series Circular No. 12b.)

Case 242.

(Answer not finally approved. See Accounting Series Circular No. 12b.)

Case 243.

Query. In clearing a wreck it is necessary to use wreck train, engine, and crew of another company. In preparing voucher, should charge be distributed to "Hire of Equipment" and "Clearing Wrecks," or should the entire expense be charged to the last-named account? To what accounts would the bills of the company performing the service be credited?

Answer. Amounts paid for use of wreck engine, crew, and derrick of another company hired in emergency to clear a wreck should be charged to "Clearing Wrecks' by the company who pays the bill. The company furnishing the wrecking outfit should credit the amount to each primary account affected for actual service performed and credit the amount charged as rent of equipment to "Hire of Equipment."

Case 244.

Query. What is the proper classification of expenses for "Stationery and Printing" used by outside agents, advertising department, and fast-freight lines?

Answer. Account "Stationery and Printing," under "Traffic Expenses," includes all stationery used in traffic department, except stationery used by "Industrial and Immigration Bureaus.'

Case 245.

Query. The account "Train Supplies and Expenses" in the Classification of Operating Expenses, Third Revised Issue, provides for the cost of oil, grease, waste, wool, and other supplies used in lubricating cars. The account "Roadway and Tracks," under the subheading "Train Service, provides for the cost of fuel, stores, and other supplies for work-train locomotives and cars. Should the oil used for lubricating work trains be charged to "Train Supplies and Expenses" or considered as a portion of the supplies mentioned under "Roadway and Track?" Answer. Oil for lubricating work trains should be considered as a portion of the supplies mentioned in account "Roadway and Track."'

Case 246

Query. To what revenue account or operating expense account should be credited the slight profits accruing to a carrier on bills rendered against other roads or outside individuals; that is to say, percentages added to labor, and material for superintendence, use of tools and accounting, and other items of profit, where the charge made is somewhat in excess of the cost to the carrier rendering the bill? Answer. Should be credited to "Operating Expenses." (See Case 262.)

Case 247.

Query. In regard to the distinction between "Operating Joint Yards and Terminals" and "Operating Joint Tracks and Facilities," and as to whether we should include in "Joint-facilities' accounts, joint expenses of all kinds, such as interlocking plants, crossing flagmen, etc., we are now entering our July bills, and it is important that we know how these should be distributed. In this July account we will be vouchering and charging bills for joint facilities made and credited by other railroad companies prior to July. These bills will therefore not show the dis tribution to the "Joint-facilities" account. Will it be proper to charge such bills to the proper "Joint-facilities' account, regardless of the distribution made by the carrier rendering the bill?

Answer. Expenses that enter into accounts subsequent to July 1, 1907, on account of joint facilities of all kinds should be handled through the "Joint-facilities"

accounts.

See Supplement, effective on July 1, 1908, to Classification of Operating Expenses for Steam Roads, Third Revised Issue.

Case 248.

Query. Under Maintenance of Equipment-Superintendence" is included the words "general foreman." What is meant by this term and in what respect are they distinguished from shop foremen as shown under the clearing account Shop Expenses, on page 56 of the Classification?

Answer. Shop foremen ordinarily means foreman of machine shop, foreman of boiler shop, foreman of blacksmith shop, and foreman of any department. General foreman is a term applicable to such foremen as have jurisdiction over the several departmental foremen known as shop foremen, where the organization is sufficiently large to require the service of a general foreman, as distinguished from a depart mental foreman. Where a single foreman has charge of all shops without the assistance of departmental foremen, he should be regarded as a shop foreman.

Case 249.

Query. Should per diem reclaims be treated as a matter of hire of equipment! If not, to what account should such per diem reclaims be charged and credited? Answer. Reclaims should be treated the same as per diem payments and disposed of through the account, Hire of Equipment."

Case 250.

Query. In addition to our paying other companies a proportion of maintaining joint tracks, maintaining joint equipment, operating joint tracks, and general ad ministration of joint tracks, we also pay a flat rent per annum. How shall we take care of such payments?

Answer. Should be charged to an appropriate rent account under "Income.”

Case 251.

Query. Should the salary of a station agent who also acts as a copy operator for dispatching trains be divided between " Dispatching Trains" and "Station Employees, or should the salary be charged entirely to "Station Employees?'' Answer. All to Station Employees.''

Case 252.

Query. To what account under the new classification should be credited amounts received from tenants for the privilege of cutting hay along our right of way? Answer. Operating Revenue Account No. 19, Miscellaneous.'

Case 253.

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It is suggested that the note under the account "Water for Yard Locomotives" (page 69, Classification of Operating Expenses, Third Revised Issue), also the note under the account "Water for Road Locomotives" (page 72, Classification of Operating Expenses, Third Revised Issue), reading, "The apportionment of water as between yard and road locomotives should be on the basis of the relative number of tender tanks taken," be changed to read: "The apportionment of cost of water as between yard and road locomotives should be based on the relative number of tons of coal used on locomotives in yard and road service.'

Answer. The apportionment of water as between yard and road locomotives should be on the relative number of tons of coal used on locomotives in yard and road service.

See Supplement, effective on July 1, 1908, to Classification of Operating Expenses for Steam Roads, Third Revised Issue.

Case 254.

Query. To what account should compensation for use of an air-brake instruction car, the property of the International Correspondence School, and used by a rail

way company in the instruction of its employees in the transportation and motive power departments, be charged?

Answer. Should be disposed of in accordance with note on page 64 of the Official Classification of Operating Expenses, under "Transportation ExpensesSuperintendence."

Case 255.

Query. Matters pertaining to the land and tax departments of a certain railway company are in the hands of a land and tax commissioner of an allied company, to whom 5 per cent of his salary is paid by the former. Is such payment a proper charge to "Salaries and Expenses of General Officers?''

Answer. Yes.

66

Case 256.

Query. Should Metallic Packing," now listed in transportation expenses under "Other Supplies for Yard Locomotives" and "Other Supplies for Road Locomotives," be considered a repair in place of a supply article? That being the case, "Metallic Packing" would hereafter be listed under "Steam Locomotives-Repairs," "Electric Locomotives-Repairs.''

Answer. Metallic packing is a vital part of a locomotive, and is more of the nature of repairs than supplies. It should be charged to "Steam LocomotivesRepairs" and "Electric Locomotives-Repairs," instead of to "Other Supplies for Road Locomotives" and "Other Supplies for Yard Locomotives," and the Classification of Operating Expenses is amended accordingly, effective on July 1, 1908. See Supplement, effective on July 1, 1908, to Classification of Operating Expenses for Steam Roads, Third Revised Issue.

Case 257.

Query. Classification of Operating Expenses, Third Revised Issue, requires a debit to each account affected with apportionment of the charge, shop expense. It is claimed this ruling is in conflict with M. C. B. Rule No. 104, and the question arises if it is the intention to disregard the M. C. B. rules where they conflict with Classification of Operating Expenses, Third Revised Issue?

Answer. M. C. B. rules govern only charges of one carrier against another carrier and do not affect or govern "Operating Expenses" accounts. There is no

conflict.

Case 258.

Query. Under the heading of "Maintenance of Way and Structures" (page 40, Classification of Operating Expenses, Third Revised Issue), "Maintaining Joint Tracks, and Other Facilities," are the expenses incident to employees at stations, owned or used jointly, to be treated as a debit and credit to the similar transportation accounts?

Answer. Yes. (See Case 193.)

Case 259.

Query. Should the amounts received for switching a private car and its occupants from one railroad to another in order to continue the movement from point of origin to destination be credited to Account No. 9, "Switching Revenue?' Answer. Yes.

Case 260.

Query. Should the amounts received from switching express cars from one railroad to another to continue the movement from point of origin to destination be credited to Account No. 9, "Switching Revenue?"

Answer. Yes.

Case 261.

Query. To what account should coupons found in covers of interchangeable mileage books returned for redemption be credited?

What account should be credited with the value of coupons from mileage books which remain unpresented after the expiration of the limit of the ticket?

To what account should be credited amounts of unclaimed penalty collections on trains; also, unclaimed redeemable portions of mileage tickets and credentials? Answer. To Account No. 8, "Other Passenger Train Revenue."